With FinEdge, MUTUAL FUNDS Sabse Sahi Hai !

In fact, there’s a mutual fund investment available for every need. Whether you want to save systematically for two decades for your retirement, park your money for just a couple of weeks to earn better returns, benefit from the growth potential of a particular sector, or invest your newly received bonus with moderate risk to achieve inflation-beating returns, you can be sure that there’s a mutual fund investment available for your needs!

Which Mutual Fund is “Sahi” for you?

With over 2,000 different Mutual Fund schemes present across more than 25 categories (and new ones being launched every month!), picking the best Mutual Fund scheme to suit your unique requirements can sometimes become a challenging task! Fortunately, FinEdge can help.

We’re the best at what we do…

At FinEdge, we go to great lengths to ensure that only the best Mutual Funds to invest find a place in your portfolio. No wonder we’ve been awarded and recognized repeatedly for our comprehensive, financial planning led fund selection process to lead you to the best mutual funds to invest!

What are Mutual Funds?

Mutual Fund are true all-rounders when it comes to helping you meet your financial objectives! Basically, a mutual fund investment is nothing more than a pooled investment vehicle. When you choose to invest in mutual funds, your money gets added to this pool along with thousands of other investors. This mutual fund investment is managed by a professional fund manager and a team of analysts according to the fund’s investment mandate, and each fund carries a different risk-reward profile.

For example, a small cap mutual fund investment may be more volatile that a debt mutual fund investment, but also has the potential to deliver much higher returns over the long term. Before you invest in mutual funds, it’s essential to consult a professional financial advisor on the type of mutual fund investment that best suits your unique goals and objectives.

Plan Your Mutual Funds Investment for your Goals

Most investors spend a lot of time trying to select the best mutual funds to invest into, without addressing the key question of “why” they are investing! The best way to invest in mutual funds isn’t by looking at past returns or star ratings, but on the basis of your financial goals.

For example, if your goal is to retire wealthy 25 years later, a small cap mutual fund investment may be best suited for that need. On the contrary, if you’re looking to invest in mutual funds to build a solid emergency fund, the best mutual funds to invest into would be much lower risk in nature, such as an arbitrage fund or a liquid fund. So, it makes sense to use your goals to determine the best mutual fund investment for you, rather than trying to chase returns or buying into the latest NFO (New Fund Offer).

How to Invest into Mutual Funds

Despite their widespread growth, many investors remain confused about how to invest into mutual funds! Should they invest a lump sum, or through Systematic Investment Plans? What about STP’s and SWP’s? Should they invest into mutual funds in one shot or gradually, over a period of time? Such questions about how to invest into mutual funds leave many investors confused. To keep it simple, there are basically two ways to make a mutual fund investment.

Systematic Investment Plans

If you want to save up systematically, in a disciplined manner, for a clearly defined financial goal; then a SIP mutual fund investment is the perfect choice. With SIP’s, a fixed amount of money is debited from your account every month and channelized towards your mutual fund investment. Not only is this easy on the pocket, but it also reduced the risk associated with your mutual fund investment over the long term, through a process called “rupee cost averaging”.

Lump Sum

If you are at an advanced stage of your wealth creation journey and wondering how to invest in mutual funds, a lump sum mutual fund investment can be considered as well. Of course, the risk associated with investing everything at a single market level will be higher, but you could potentially end up earning higher returns from your mutual fund investment too, if markets start to move up right after you invest. It is always advisable to make the lump sum mutual fund investment into a low-risk fund and then use a systematic transfer plan to move money into the high-risk fund in a staggered manner.

Advantages of Mutual Fund Investments

Diversity

Whatever your risk profile or financial goal, there’s a mutual fund investment to fit your needs! From low-risk liquid funds that offer returns that are slightly better than savings accounts to high-risk equity mutual fund investments that can deliver superior wealth creation. In a sense, mutual fund investments are a “complete” investing solution.

Professional Management

Even if your mutual fund investment is Rs. Just 500 per month, you’ll enjoy the advantage of having a seasoned, professionally qualified and expert managing your funds. By leaving the money management to the experts, you can stop worrying about how to invest and where to invest – and start thinking of way to generate more money to invest instead.

Regulatory Comfort

You can sleep peacefully at night knowing that your mutual fund investment is strictly regulated. In fact, a mutual fund investment is structured as a trust, which is managed by a board of trustees. The only beneficiaries of the trust are unit holders – that is you, and others who have invested into it.

Frequently Asked Questions - Mutual Fund Investments

How do mutual funds work?

Mutual Funds investments pool together funds from thousands of investors and assign a professional fund manager to take investment decisions on that “pool” of money, based on the fund’s mandate. Investors are assigned “units” of that mutual fund, which is similar to owning shares of a company.

How to choose a mutual fund that suits your financial objective?

It’s simple! Base your decision on your time horizon and nothing else. If your goal is long term, embrace risks and remain invested through all market cycles. If its short term, go for a low risk mutual fund investment. A professional financial advisor can be very helpful when it comes to setting financial goals and keeping you aligned to them.

How do mutual funds help in financial planning?

Mutual Fund investments are fantastic for financial planning! Because of their versatility, they are the ideal solution for constructing a goal-based investment portfolio. SIP’s (Systematic Investment Plans) allow investors to gradually and steadily create wealth for their goals over time.

Are mutual funds safe?

From a regulatory perspective, mutual fund investments are one of the safest investment instruments available today. Mutual Funds are closely monitored by SEBI and adequate checks and balances are in place to ensure a high degree of regulatory comfort for investors. However, it’s important to understand that every type of mutual fund carries its own degree of risk (and commensurate reward), and its critical to understand these risks before investing.

Does it make sense to invest in mutual funds?

A mutual fund investment can provide you with exposure to a broad range of assets that are managed by professional fund managers, while diversifying your portfolio.  To ensure that mutual funds align with your overall investment strategy, you must consider your individual financial goals, risk tolerance, and investment horizon.